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2014 (9) TMI 433 - HC - Income TaxRe-computation of interest payable u/s 201(1A) - Whether the Tribunal was correct in law in directing the AO to recompute the interest payable by the assessee u/s 201(1A) after taking into consideration the advance tax and self-assessment tax paid by the employees concern – Held that:- Following the decision in Commissioner of Income Tax Versus M/s. Babcock Overseas Project [2014 (9) TMI 320 - DELHI HIGH COURT] - the foreign employees of the respondent/assessee had paid tax in India either by way of advance tax or self assessment tax - the AO had himself not levied interest commencing from the period of deductibility of tax till the end of the Financial Year - levy of interest u/s 201(1A) is neither treated as penalty nor has the said provision been included in Section 273B to make “reasonableness of the cause” for the failure to deduct a relevant consideration - Section 201(1A) makes the payment of simple interest mandatory - The payment of interest under that provision is not penal - There is no question of waiver of such interest on the basis that the default was not intentional or on any other basis. If the employees (i.e. payee) had paid taxes as per the individual return/assessment, no amount as tax would be payable to that extent and the liability for interest would be only for the period commencing from the date of such tax was deductible to the date on which tax was actually paid. - Decided against revenue.
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